B.Com Part II - Realization Account

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<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Mamdani99</i>
<br />I need your assistant. Plz help me.

I took this from unsolved paper of B.Com Part II Accounting.(Year 1988 Q.No. 2 - Accounting for Co. - AMALGAMATION)

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Plant Asset Rs. 80,000 (DR)
Allownance for Depreciation - Plant Asset Rs. 15,000 (CR)

Plant Assets are taken over at Rs. 60,000 by new co.
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My question is that what is the journal entry of liquidating Co.
and also I need the journal entry in the books of new company.

Thanks.


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Dear I duno wot methods b.com is pursuing, but to be general and applying normal accounting, this seems a normal disposal by the disposing company and a normal acquisition of capital asset by the acquiring company,

Disposing Company

Cash a/c 60,000
Loss on disposal a/c 5,000
Asset a/c 65,000

Acquiring company

Asset a/c 60,000
Cash a/c 60,000